Sentiment. Energy stocks higher now for the second day in a row. Thats as oil jumps to its highest level in nearly a month. Back near 30 a barrel whats going on there . Plus, texas reopening. Maybe that has something to do with it. Texas reopening restaurants and Retail Stores over the past week well talk to one restaurantur who owns about ten restaurants in texas looking forward to that. Thanks stocks are on track for their worst in two months. Even as we take a peak at green, positive territory. If you take a look, tyler mentioned a 270 point decline for the dow industrials. We are hover, there you have it. A new fresh intraday high as the dow is up 32 points. Its not a lot but all three sectors in the green they were all in the red at one point so far today take a look at energy. We mentioned those oil prices. Remember, focus on technology. Were marginally in red territory. A volatile session for the bond market on this friday after a record drop in retail sales. Lets get to rick for the details. High, rick it was indeed a record drop retail sales down 16. 4 . The lowest ever. If you look at one week of two year note yields, you can see last friday we traded intraday lowest intraday ever we hover around 14 basis points. Only down a basis point on a day. 14 is the lowest close ever for a twoyear note. Lets look at intraday of ten. Industrial production made up 101year low the lowest ever in 101 years that level down 11. 2 you could clearly see at 8 30 eastern thats when we made the low at 58 basis points its moved up sense. If you open the chart up to early march, we see the all time low, closer on the left at 54 basis points and weve been walking down towards it for a couple of weeks now. Much of that is at the pain of others like merging markets that need to procure dollars at higher levels. Tyler, back do yto you thank you have a good weekend and stay well for more on todays market snap back that weve been witnessing in realtime, lets bring in Michelle Mckinnon and ron. Let me begin with you. One of the things that had the market concerned earlier today and i believe has you concernedd between the United States an china, specifically about sort of impeding the sale of Certain Semiconductors to huwei. Youre worsried this would worsn the situation overall. I think thats right. I think im not the only one that shares those concerns. Its really antigrowth. I think it would exacerbate the downturn were seeing. Tensions are growing between the two countries. I think not to our advantage and i would agree with our colleague jim kramer, this is not the appropriate time to engage in this type of behavior. The u. S. Economy hasnt recovered yet. Were not dealing from a position of strength, nor is china for that matter. Why dont you weigh in on the point ron is making in respect to trade its also some of the comments about the viruss origination in china. Chinas responsibility for it. This is not made what seem the relations between the United States and china any better. How worried from a market perspective are you about a deterioration in u. S. China relations . Of course its a concern. I think theres so many concerned right now for investors to try to weigh. It can be really exhausting. When you think about the november election it will create volatility what were telling our clients is to stay invested. We havent changed our long term strategic allocations and further more for investor that might have gotten out of the market back in march, its tough to try to make call of when to get back in. Michelle, while im with you, im going to stick with you for a second crude is up about 20 over the course of this week pressing in on 30 a barrel. What does it mean . What does it tell you . Its been volatile. We choose not to i vest in commodities. I think the volatility has shown its been all over the map the past few weeks i think crude being up is probably positive. Maybe thats showing a sign that the economy will get back on track. Its a few days volatility and really hard to say ron, i want to get your reaction to a comment yesterday by dan of zuirion investments. He went after the fed and by extension the fiscal side for the amount of sort of tonnage, money thats been pumped into the market lets listen to the sound bite and get your reaction to it. Rates are going to go higher at the worst possible time for the economy and i dont care what other expert vs s have to , i disagree that we can pretend its nothing and just throw whatever money we can at it. Thats classic maladaptive economic strategy. Part of his argument i would disagree with that. Part of the argument is at some point the bills will come due and youre flooding so much new treasury into the market at a time when the world may not be as devoted to the dollar as a reserve currency and the result could be higher Interest Rates you have to pay more to attract the buyers to absorb the supply. Yeah, i have longer term concerns clearly about the size of deficits and the accumulation of debt. Having said that, youre in between a rock and a hard place here refr knews were going to fall in the midst of this depressio depression recession, whatever it turns out to be issuing debt to try to provide relief for the economy is one of two choices. You have neither one has paul suggested yesterday is all that great. Having said that, if the bond market was going to find this maladaptive economic behavior so loathsome, rates would be up were borrowing 3 trillion this quarter. The yield on the tenyear treasury will be below 1 and the 30year at 1. 3 . People would have thought you crazy but thats exactly whats going on i would argue its that gentlemans reasoning. All right maybe well have you, him and mr. Mcculley on. You can hash it out. Kelly. Retail sales terrible this morning. Plunging more than 16 in april which was far worse than expectations Courtney Reagan is here with the details. Far worse than expectations but we never before seen a month like that. Were nearly all nonessential retail, restaurants were closed and americans stayed off the road but still it was pretty bad. For the month of april we did see retail sales down 16 from march. If you look at year over year down about 22 , the Commerce Department survey shows that if you look at the Clothing Stores themselves, abysmal. This makes sense because everything was closed. Down 79 from march. Grocery stores, that was down 13 from march which is interesting. It was up 13 year over year that suggests to me we werent quite stockpiling like we were in march but we still bought more than we did last year building materials, garden supplies, those stores were open we could all be planting those Victory Gardens. I know youve been doing that. Still sales down 3. 5 in april for that segment too nonstore, this makes sense this is largely e commerce up 8. 4 from the month prior. Up 22 when youre looking year over year. Separately, i want to talk about what we learned about jcpenney they may be clear to filing fast break bankruptcy but it did make an Interest Payment due today. 5 million theres another 12 million Interest Payment that was due april 15th they opted into a 30day grace period they will not comment whether or not that will get paid today but it is in fact, due today kelly, back over to you. The equity is at 26 cents i dont know why people are calling them and this is an industry thing i dont know why they are calling them Victory Gardens it had to do with after the war back many, many years ago. That was after the war. Were in the war were fighting the war we are in the war but its like lets get outside and show it hasnt defeated us. Lets make our homes look beautiful. Its hopeful. The semiconductors are getting slammed add the u. S. Moves to stop ship shipments to china. Well see what else we should expect in these moves. The furlough fall out of the 18 million americans waiting to return to work a new study says that nearly half of those temporary furloughs will become permanent. Well talk to a toecomp onist behind the report about which sectors are hit the hardest, after this im 53. But in my mind im still 35. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex. 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Welcome back the coronavirus pandemic accounted for a Record Number of job losses in april. 78 of unemployed americans said they considered themselves temporarily furloughed and expect to be back to work in six months a new study out from the university of chicago paints a much gloomier picture estimating 42 of of those furloughs will be permanent why do you think this job loss will be permanent . Its great to be with you well, you cited the 42 figure we got that in two parts first we surveyed firms in april and asked them, what fraction of yourlayoffs do you say are permanent . That number was 23 . A recent Household Survey by the Washington Post got the same number then we did Something Else we looked back and we said, of the layoffs that firms and workers thought were temporary when hay happthey happened, howf them led to recalls. A good chunk of them never led to recalls i can see during 08, 09, a lot of those job wouldnt come back because we had a housing bubble in this case with the pandemic, why should it have the same effect why shouldnt it be the case the job losses will prove temporary as people return to their daily lives, so to speak two big reasons this idea well go into a deep freeze and when the thaw happens were all going to be back to things as it were. I think that idea is Serious Problems and partly wrong. We can see that in the kind of demand shifts that have already happened businesses are doing a lot less travel than before the pandemic. They wont go all the way back to where they were any time in the near future. Airline travel is down more than 90 from a year earlier. Airline industry isnt going to come back to those levels in the near future. Thats a lot of lost jobs. Then within sectors like say health care, theres going to be big shifts weve already seen a move to telemedicine which is quite new in the u. S. Scene. Thats not going to reverse. Some medical clinic, some doctors will be very adept and meeting the demand for telemedicine customer preferences to avoid disease transmission risks well see a lot of shifts of that sort. A shift away from dine in restaurants towards take out and delivery its already happened. Some of it will stay in place. One other thing to keep in mind is in the past, when we had temporary layoffs, most of them came back within two months. The ones that came back. This pandemic recession looks like it will go on much longer than that and that means many of those temporary layoffs will never result in recalls. Most people will tell us it will be a depression or terrible event say thats why we need 8 trillion of stimulus and more from congress and more from the fed and international coordinate nation you guys have a different response you say that instead the best way to make sure the economy comes back more quickly is to remove barriers for faster recovery that includes Unemployment Benefits that exceed worker earnings, occupational licensing restrictions anybody who tries to open a business knows what youre talking about. Theres rarely appetite for this response why would this time be different . Let me say theres a role let me start be unemployment snurns once that you mentioned a new study by my colleagues find if you look at the bottom one fifth of wage earnings, they are getting paid twice as much for Unemployment Benefits as they were paid when they were working. That kind of policy discourages and delays this reallocation process we need. Dont get me wrong, theres an Important Role for Unemployment Insurance benefits to help those who have lost their job. Paying them more to not work than to work the not a very good idea in my view. Like wise, lets take the way the u. S. Government is responded to the Airline Industry problem. Right now the u. S. Government is paying the airlines to keep their employees on payroll till october. Well, news flash, the Airline Industry is not coming back to where it was in october. As soon as october rolls around, theres two choices. Either taxpayers continue to pay airline employees not to work or theres going to be large layoffs in the Airline Industry. Thats just delaying the kinds of reallocation that we need you mentioned several other things occupational licensing restriction s a great example. During the crisis, Governor Cuomo said, wait a minute, dont we want out of state Health Care Personnel to come to new york and practice and help our pashtpasht patients in new york of course we do. It ran into occupational licenses restrictions. I hope that kind of thing is permanent so the kpi can many quickly respond to the kinds of shifts in labor demand they are taking place because of the pandemic i encourage every one to read the paper in my newsletter its fascinating dive on what this might look like we appreciate it thank you tyler thank you very much. Still ahead, Semiconductor Stocks under pressure. Weighing on the tech sector more broadly as tensions with china raise over the coronavirus fall out. Well tell you the names one analyst says are still safe to buy. Plus, talk about power mover shares of Aurora Cannibas surging more than 60 . Thats just today after the company says consumers, what is are they doing theyre stockpiling poe ining pe outbreak toilet paper, paper towel, weed. The stock is still down from its high well have the ceo it will be a high point, later th hr. Isou this is decision tech. Find a stock based on your interests or whats trending. Get realtime insights in your customized view of the market. Its smarter Trading Technology for smarter trading decisions. Fidelity. Right now, there are over a million Walmart Associates doing their best to keep our nation going. Because despite everything thats changed, one thing hasnt and thats our devotion to you and our communities. Our priority will always be to keep you and our associates safe, while making sure you can still get the essentials you need. Lets check on the markets moving to the upside its about a third of a percent gain for the dow up 6 points for the s p and the nasdaq is green. Here are the leaders its walt disney leading the way. Obviously the biggest pandemic names thats traded out there. Tyler. Kelly, lets go over to sue for the latest on the coronavirus. Hey, sue good afternoon, every one here is what we know at this hour the white house says work is progressing quickly on a Coronavirus Vaccine. That is the message from the head of the governments Vaccine Development program which is called operation warp speed. I have very recently seen early data from a Clinical Trial with a Coronavirus Vaccine these data made me feel even more confident that we will be able to deliver a few hundred million doses of vaccine by the end of 2020. In england, the vaccine being developed and tested by Oxford University will not be expensive and it will be produced in very large quantitiequantities a key goal has been to make a low cost vaccine that could be distributed around the world around the world there are more than 4. 5 million confirmed cases of coronavirus the u. S. Makes up about a third of the total or more than 1. 4 million infected russia is in second place with just over 260,000 cases. As always, you can get more on our coronavirus coverage by heading to cnbc. Com. Back to you. A salt lake up in the semis thats whattage i agnalysts aren this news. I caught up with mitch he covers the ships. Bro broadcomm did 900 million in revenue last year. They could retaliate its going to build an advanced semiconductor in arizona spending 12 billion to do so in support from the u. S. Govrt. It isnt immediately clear what that support means production starts in 2024 and will create 1600 jobs. Back to you. Thank you very much lets get more on the outlook for chips this year on trading nation today im joined by patrick moorehead. Mice pun patrick, welcome how would you play the Semiconductor Names . Yeah, so first off, i think this china spat is another episode in this ongoing trade and ip i wouldnt look too closely. This is what the 12th version of these bilateral spats. That was a new piece that came out from the federal government today which said, if youre even using u. S. Based equipment or u. S. Based software to make your chips, you need to get a license from us to go there. Does the fact the chips are trading down make sense to you or is it a buying opportunity . I think its a buying opportunity. I dont see any of this sticking or having long term i understnd. Some of